Banks, like many other institutions, have opened their doors wider than ever to cryptocurrency as customers continue to demand these services. U.S Bank is the latest of these financial institutions to give a warm embrace to cryptocurrency and are reported to have launched their cryptocurrency custody services following strong interest from its investors. In a statement, the bank said, “Investor interest in cryptocurrency and demand from our fund services clients have grown strongly over the last few years.”
Meeting Clients Demand
The bank announced on Tuesday, noting that its global fund’s service clients can now enjoy the recently launched cryptocurrency custody services. There is an intense race to meet the demands of institutional investors who want to wager on cryptocurrency, and U.S bank, the fifth largest retail bank in the country, with its launch, has made any indication that it intends to be at the forefront of the crypto revolution.
The offering to fund managers will aid them to store private keys for Bitcoin as well as Bitcoin Cash and Litecoin with support from sub-custodian NYDIG. In a statement, Gunjan Kedia, vice-chair of the wealth management and investment services division of the bank, noted that other coins like ethereum would soon be supported over time.
More Recognition for Crypto
The move by the U.S bank to add Bitcoin to its wide range of services is the latest indication that traditional financial institutions are beginning to recognize cryptocurrency as a viable asset class. Other big players and major institutions in the financial world, such as the Bank of New York Mellon, State Street, and Northern Trust, have all announced ambitions to store digital assets. These custody banks verify and preserve trillions of dollars in traditional assets for money managers.
In an interview, Gunjan said, “ Our clients are getting very serious about the potential of cryptocurrency as a diversified asset class. I don’t believe there’s a single asset manager that isn’t thinking about it right now.” His statement shows the change of perspective in these institutions that once opposed the rise of cryptocurrency
Clients are Already on the Trend
Gunjan reportedly polled the banks’ biggest clients to see if their interest in crypto assets was serious and genuine after a key regulator released a document last year establishing that national banks may hold crypto assets. It was then discovered that there was widespread interest in cryptocurrency, not just among a few niche players, and that clients expected the bank to move rapidly and join the train.
U.S Bank’s Gunjan claimed that some of the bank’s investing clients already have bitcoin investments, while others are waiting for custodial services to start. It is expected that more top financial institutions would follow in the steps of the U.S Bank to adopt cryptocurrency.